Originally posted by *isteve A small question...
Given the fact that Hoya seems to like a safe portfolio with excellent margins and profitability, would the imaging division not seem to be a bit risky by Hoya standards? Of is there some technology spinoff between imaging and medical?
Hi Steve,
You kind of answered part of your first question with your second question.
The honest answer to your first question is I don't know. But let me try to clarify things...
I do not want to give the impression that Hoya's asset base is "safe". The semiconductor equipment industry is cyclical. Eyeglasses are subject to changes in fashion and technology. Moving factories to low cost geographies can have country and startup risks. And so on. I would say that Hoya has managed its assets well and earned a good return on them in the last several years.
But these good returns were earned based on decisions made probably 3-5+ years ago. The company has to take calculated bets
now in order to plan for the next several years+. Regarding the imaging business, it has come a long way in the last several years and this momentum is obviously continuing with the K10. If the imaging division management can put together a business plan for the next 5 years, building on their current strength, why wouldn't Hoya go along with it?
As long as the return potential is commensurate with risk.
Now, where's my FA200/2.8?